The City of San José processes requests for payoff demands of existing homebuyer and home repair loans, and affordability restrictions (i.e. A payoff statement or a mortgage payoff letter will typically show the balance you must pay in order to close your loan.This is an example of a payoff letter used in a syndicated loan transaction. This payoff letter (including the defined terms such as Lenders,. The mortgage discharge or lien release is recorded. Step 1: Notify lender of intent to pay off mortgage including payoff date, expected payoff amount and seek consensus that this is the correct amount.